Chapter 13 Summary

Chapter 13 bankruptcy allows a person to consolidate debt while making convenient, monthly payments to a trustee. A payment plan is proposed which repays the debt over a three to five year period. The amount of the monthly payment and the length of the repayment plan are based upon the following factors:

The most common uses of Chapter 13 involve:

Secured debts are paid 100% on the dollar, while unsecured debts may be paid less than 100% on the dollar. A person receives a discharge under Chapter 13 once the payment plan is completed.

Chapter 7 Summary

Chapter 7 eliminates:

Chapter 7 is the most commonly filed form of bankruptcy, and can provide you with a fresh start? More and more people find themselves struggling with debt they cannot control. Chapter 7 bankruptcy may discharge all of this debt, give you control you're your finances, and provide you with a badly needed fresh start.

Does the "new" bankruptcy legislation mean that people can no longer file a Chapter 7 Bankruptcy?

The answer to the foregoing question is no. All types of bankruptcy protection are still available. It may be harder for some individuals to qualify to file a Chapter 7, but it is not impossible nor prohibited.

What kind of bankruptcy protection is available?

There are four primary types of bankruptcies. Generally, Chapter 7 bankruptcies are liquidations and are available to both individuals and businesses; Chapter 13 bankruptcies are limited to individuals who have a regular source of income that will fund a Plan to repay creditors; Chapter 11 bankruptcies are generally utilized by businesses, but can also be filed by individuals. Chapter 12 is limited to family farmers. Our attorneys can help you decide what type of bankruptcy filing provides your business or you the best relief from creditors.

Who can file for bankruptcy protection?

The simple answer is that almost all persons and businesses can file for bankruptcy protection. To be eligible to file a Chapter 13, you must have a regular source of income and have unsecured debts of less than $290,525.00, and secured debts of less than $871,550. Chapter 7 does not have such restrictions. We can help you determine which type bankruptcy protection best fits your needs.

Can I file for bankruptcy protection if I own a business?

Yes, but it depends on how the business is owned, the value of your business, and other factors including what you intend to do with the business. The business itself may require bankruptcy protection; if you are a sole proprietor or have guaranteed your business' debts, you may also require bankruptcy protection.

Can I file bankruptcy with my spouse?

There may be advantages or disadvantages to a joint filing with your husband or wife. Our attorneys will analyze and explain to you whether it is better to file a joint petition or to file without your spouse.

Will I still owe taxes after filing bankruptcy?

It is possible to discharge some tax obligations. Your ability to discharge taxes will depend on several factors, including the type of tax owed, when and whether the taxes were assessed, and whether you filed a tax return. If this is one of your concerns, you need to see an experienced attorney to determine whether your tax obligations can be discharged in bankruptcy.

Can a bankruptcy filing stop creditors from suing me or calling on the telephone?

Once a bankruptcy is filed, creditors are generally stopped from pursuing collection activities, including telephone calls, and commencing or continuing lawsuits to collect their debt.

If I file bankruptcy, can I keep my house or my car?

Generally, an individual who files for bankruptcy protection may claim exemptions in certain types of property or assets. The law is very complicated and your circumstances require careful examination. Whether you can keep your property is a question that can only be answered by experienced attorney reviewing the facts of your particular situation.

How can I get more information?

If you think that you need help because your debts are more than you can handle, please call or e-mail our office. We will be glad to discuss your financial difficulties, and schedule an appointment to assist you. Click here to contact one of our attorneys.